Sensata’s 2022 Looks Primed for the End Market Rebound We’ve Been Expecting; Shares Undervalued

We’re maintaining our $75 fair value estimate for Sensata Technologies after the firm reported a strong quarter and provided guidance that aligns with our long-term view. We expect the vehicle markets that Sensata depends upon to rebound from supply constraints throughout 2022 and think its results will follow commensurately. We are particularly pleased to hear of the continued torrid growth coming out of the firm’s electrification megatrend, as a shift toward electric vehicles and higher-voltage applications across verticals is a key tenet of our long-term thesis for Sensata. We continue to view shares as undervalued and think the market isn’t fully appreciating Sensata’s opportunity in electrification or its consistent outperformance relative to its end markets.